Monday, 6 June 2016

ITIC launches cyber liability insurance extension

International Transport Intermediaries Club (ITIC) has launched a cyber
liability extension to ITIC policies to protect its existing professional
indemnity members against the growing threat posed by hackers.

ITIC
has always provided cover for damage arising from the loss of or damage to
computer records in its members’ custody. But it says that a new threat has
emerged in the form of third parties misusing the systems of its members to
cause damage to data held by others. Hacking into systems operated by service
providers, says ITIC, can be used by criminals as a gateway to gain illegal
access to information systems.

ITIC
Underwriting Director Alistair Mactavish says, “The use of information
technology and electronic communication is a central feature of the
activities carried out by ITIC’s members. Any business can be the subject of
an attack by hackers. For example, hackers could use a liner agent’s system
to obtain the release of cargo which they then steal. In covering their
tracks, the hackers might destroy all data relating to rates, container
numbers and dates and places of loading”.

“In
another example, a shipbroker’s computer system might be accessed by
fraudsters who use it to send messages to charterers, altering the banking
details for hire payments. Or malware could be inserted onto a ship manager’s
network, disrupting operation of the ship and resulting in claims for delay.”

It
is in response to such threats that ITIC has developed an extension to its
existing cover, which will protect against liabilities arising from the
unauthorised use of its members’ computer networks. This will provide
insurance to cover, among other things, misuse of computers operated by
ITIC’s members, together with any software and peripheral devices necessary
to make those computers function - including servers, networking equipment
and data storage devices.

The
cover will respond in respect of acts by people who gain access to members’
computer networks without their permission, or people who are granted access
for a legitimate purpose but misuse that access to cause harm. The policy
will cover a member’s liability to pay compensation to a third party damaged
by the unauthorised use of the member’s computer network and all associated
legal and experts’ costs incurred by that member.

ITIC is managed by Thomas Miller. More details about the club and
the services it offers can be found on ITIC’s website at www.itic-insure.com